China Approves Nokia Siemens Networks’ Deal For Motorola Unit

The company said that it procured the government’s approval to go ahead with the acquisition, which is now expected to close around April 29.

The acquisition was delayed after Huawei had complained to Chinese anti-trust regulators about the legality of the deal as it claimed that the acquisition would transfer its valuable technology to its rival Nokia Siemens.

Huawei had also filed a lawsuit in a US court, but it was settled between Motorola and Huawei. Motorola is now allowed to transfer Huawei’s technology to Nokia Siemens for an undisclosed sum.

The complaint and the subsequent inquiry by the anti-monopoly bureau of China's Ministry of Commerce had come just days after Nokia Siemens announced its plans to acquire Motorola’s cellular networks division for $1.2 billion.

Nokia Siemens will be able to leverage Motorola’s contracts with more than 50 mobile phone services providers in the world, including Vodafone, Verizon Wireless and China Mobile. The company will also inherit 7,500 employees belonging to the Motorola unit.

“There are still a few conditions relating to the legal niceties that need to be fulfilled,” a Nokia Siemens spokesperson told Bloomberg.